💵 Twitter may owe nearly $1B for allegedly duping investors
Twitter is finding out that it’s expensive to allegedly not explain the fine print to investors.
The social media company switched how it reported metrics in 2014: According to a lawsuit, Twitter had previously reported an engagement metric that measured how many timers users refreshed their timelines but stopped doing so as the company experienced growing pains. Not only that, it started notifying dormant users messages to encourage them to sign in so they could count those users as active.
The changes made Twitter look better than it was: At the time, Twitter was struggling to retain and attract users, and its stock floundered.
So earlier this week, Twitter agreed to fork over $809 million in damages. It denies any wrongdoing or improper actions.
$809 million is a lot of money, but Twitter has arguably bigger headaches when it comes to privacy, Trump, and possible changes to Section 230.